UPDATE 1-Intel says chip supply for personal computers remains tight

Intel Corp said on Wednesday it was increasing its reliance on contract chip manufacturers to ramp up supply of chips used in personal computers as the company struggles with shipment delays amid higher demand. Intel said supply remained “extremely tight” even though it has expanded its manufacturing capacity and increased second-half PC chip supply by double digits compared with the first half. Intel had said in October that demand in the PC business was outstripping its ability to add capacity and it was considering outside chip makers.